Stewart-Peterson Market Commentary

Closing Commentary - August 21, 2017

Top Farmer Midday Update 8-21-17

CORN:Corn futures have spent the morning probing lower. Dec corn is at its new low for the year, at 3.61 on losses of 4-3/4 cents as rainy weather dampens any bullish enthusiasm that might have been left over after the latest USDA production forecasts. Pro Farmer’s crop tour begins today and will shed light on the pulse of this year’s crop. Weekly Crop Ratings will be out after the close today. Weekly Export Inspections showed 691,442 tons (27.2 mil bu) checked out for shipment. In additional tender activity, S. Korea bought 55,000 tons of optional-origin corn and, Taiwan seeks 130,000 tons of optional-origin corn. Outside markets show crude down 73 cents and the dollar at a one-week low.

SOYBEANS:Soybean futures are 3 to 4 cents lower while respecting Friday’s ranges. Nov beans are at 9.34-1/2 and are looking to end a three-day win streak. USDA, in a morning announcement, said 24.4 mil bu of new crop beans were sold. Of the total, 198,000 tons (7.2 mil bu) went to China with the balance - 463,000 tons (17.2 mil bu) going to an unknown destination. Weekly Export Inspections were 665,283 tons (24.4 mil bu).

WHEAT:Wheat futures are making new contract lows in the winter wheat contracts on losses of as much as 7 cents. Dec CBOT and KC wheat now have their new support at 4.36-1/4 and 4.35, respectively. Dec MPLS wheat fell 14-1/2 cents to 6.86 before trimming losses. Weekly Export Inspections came in at 583,126 tons (21.4 mil bu). Overnight tenders showed Saudi Arabia purchasing 490,000 tons of wheat from European Union, North and South American and Australian origin. Iraq seeks 50,000 tons of optional-origin wheat; Taiwan bought 98,850 tons U.S. wheat.

CATTLE:Cattle futures are mixed after follow-through pressure from last week’s bearish moves subsided. Aug live cattle are down .500 to 105.875 after dipping slightly below Friday’s low of 105.750. Oct live cattle are up .050 to 105.950. Aug feeders are down .650 to 139.850. Other than Fed Cattle Exchange trade on Wednesday, we’ll get a Cattle on Feed report on Friday afternoon.

HOGS:Hog futures are down sharply with the front three months off more than 1.000. Oct hogs are down 1.050 to 65.025. Oct is down 1.100 to 60.225. Last Wednesday’s bearish outside reversal has spelled significant follow-through selling pressure. In addition, expectations for cash to trade $1.00 to $2.00 lower is weighing on sentiment.

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